USD/JPY: upside limited below 112.40

Valeria Bednarik FXStreet

USD/JPY Current price: 111.86

The USD/JPY pair extended its advance overnight, reaching a weekly high of 112.08, but holds within a limited intraday range. Ahead of Fed's outcome, the USD/JPY pair trades around 111.80, having failed to settle above 112.00. In the 4 hours chart, the price remains above the 50% retracement of its latest bullish run, the immediate support at 111.60, and a downward acceleration below it should see the pair retesting the critical 110.90 price zone, in where the pair bottomed multiple times mid June, and also the 61.8% retracement of its June/July rally. Below it, and approach to the 110.00 level during the upcoming sessions will be on the cards. In the same chart, technical indicators hold above their mid-lines, limiting chances of a downward move, albeit a major static resistance stands around 112.40, where selling interest will likely contain rallies in the case of an advance, although a break above it could see the price nearing 113.00 ahead of the weekend.

Support levels: 111.60 111.20 110.90

Resistance levels: 112.00 112.45 112.90

View Live Chart for the USD/JPY

Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

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